Economic Basics
What is an economy?
An economy is a system of producing, distributing, and consuming goods and services.
What is currency?
A type of money
What is supply?
Supply is the amount of a product that producers are willing to sell at a given price.
____ is the use of public notices to bring attention to a product or service
Advertising
Who decides what to produce and sets the prices in a market economy?
Producers
What are goods?
Goods are physical items that can be bought or sold.
What does it mean to barter?
To trade one type of good or service for another
What is demand?
Demand is the amount of a product that consumers are willing to buy at a given price.
How limited a resource or item is called __.
Scarcity
In a ___ economy, the government decides how much of a product should be made, and sets the prices.
Command
What are services?
Services are activities performed for others, such as teaching or cleaning.
A rise in the usual price of many goods and services is called what
Inflation
What is scarcity?
How limited a resource or item is.
The value of the item you did not buy when choosing between two items is called what
Opportunity Cost
What is another name for a market economy?
Free Enterprise System
What is a producer?
A producer is someone who creates or supplies goods and services
The money a business has left over after it pays all its costs is called a ____.
Profit
What is opportunity cost?
When you have to choose between two items, opportunity cost refers to the value of the item you did not buy.
Manufacturers try to ____ their products by putting them near cash registers so that it is easy for shoppers to see and buy them.
Promote
What type of economy does the United States have?
Market/Free Enterprise
What is a consumer?
A consumer is someone who buys and uses goods and services.
A(n)____ is a person who comes up with their own idea for something people might want or need, and starts their own business.
Entrepreneur
What affects prices?
Prices are affected by factors such as supply, demand, production costs, and competition.
Things that encourage us to take action are called what?
Incentives
What is an export?
Something a country sells to other countries